Mohammed bin Rashid promulgates a law on joint ownership of real estate in Dubai

HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (6) of 2019 on ownership of joint properties in the Emirate of Dubai. This includes special development zones and free zones.

The new law comes within the framework of a package of legislation and regulatory decisions aimed at strengthening the capabilities of the real estate sector and enhance its competitiveness and encourage investments in it and ensure the rights of all parties involved in the sector, whether owners, tenants, investors or real estate developers, and sets out the obligations of each of these parties, to ensure the continued contribution of the real estate sector To support the overall development process in Dubai.

Earlier this month, His Highness Sheikh Mohammed bin Rashid Al Maktoum directed the formation of the Higher Committee for Real Estate Planning in the Emirate of Dubai, headed by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, to plan the real estate sector in the emirate and develop a clear and thoughtful strategy to achieve value. In addition, he issued Law No. (4) of 2019 on “Real Estate Regulatory Agency” to promote the real estate sector and support it with regulatory and supervisory measures and to provide a safe and supportive environment for real estate development projects and protect the rights of real estate developers. Sttmaren, and keep up with the steady growth of the real estate sector, and strengthening the role of the citizens of the state in this sector.

Law No. (6) of 2019 on the ownership of joint real estate stipulates that the Dubai Land Department shall prepare a special register of joint real estate, including the lands owned by the developers, on which the common properties will be established, as well as the units allocated for the independent ownership of the common property sold by the developers. The names of the owners of these units, the members of the owners committee, and the building management system prepared in accordance with the regulations issued by the Department, which shows the procedures for the maintenance of the common parts defined by the law as the parts allocated in the common property for the joint use of the owners and occupants of the housing units. The register shall also include the percentage of the owners' participation in the related costs, including equipment and services located in any part of another building, the plans, and the destination of the administration that manages the common facilities, common property or common parts in accordance with the provisions of this law. Includes developer, management company or hotel project management company as the case may be.

Contracts for the management of the joint property or the joint parts, their area and percentage of the area of ​​the units in the joint property, in addition to the areas owned by the developer shall be recorded in the joint property. The Department of Lands and Property shall issue, upon request of the concerned parties, certificates, bonds and any other documents related to the unit or joint property. According to the data of the Register, every interested party shall have the right to access this Register.

The rules and conditions stipulated in Law No. (7) for the year 2006 on real estate registration in the Emirate of Dubai shall apply to the ownership of the common property, and in particular the determination of the areas in which real estate is owned by non-citizens in the Emirate of Dubai.

According to the law, the schemes and the system of the complex form the basis that includes the terms and conditions governing the development and operation of the main project and the joint real estate and the common facilities therein, including the planning and construction standards of the complex, as well as the statute and the building management system, as part of the title deed of the joint property. The owner of the unit, whether the landlord, the tenant or any other person authorized by the landlord to benefit from the unit, adheres to the developer, the owner and the occupants of the other units. To the extent applicable to its provisions.

The developer, whether the master developer or the sub-developer upon completion of the joint property and obtaining a certificate of completion from the competent authority in the Emirate, shall submit to the Dubai Land Department the documents which form part of the title deed of the joint property within sixty days from the date of issuance of the completion certificate. This period shall not exceed thirty days, provided that the developer provides reasonable reasons for the extension accepted by the Department. The developer's obligation in this case does not include the deposit of the building management system prepared by the Real Estate Regulatory Authority.

In case the developer fails to submit the said documents within the specified time limit, the Department may ask any party it deems appropriate to provide them with such documents and deposit them with the developer, bearing all the expenses and costs that may arise therefrom. Provisions of this Law: Issuing and updating maps of joint and special common parts, which include connections, equipment, equipment or facilities allocated in the common property for the exclusive use of a certain number of owners in the common property and not other other owners. Common facilities.

The law defines the components of the common parts of the buildings, including: the structural parts of the common property, including the main pillars, foundations, columns, structural walls, ceilings, roof links, staircases, staircases, façades, roofs, thresholds, corridors, parking corridors, entrances, emergency exits and windows on exterior walls, including guard rooms; Facilities, recreational equipment, swimming pools, gardens, storage facilities, offices, and car parks for use by the management, committee of owners or visitors, unless otherwise specified in the site plan.

Common component components also include major utility equipment and systems, including generators, lighting systems, gas and hot and cold water, heating and cooling systems and equipment, air conditioning systems, waste collection and treatment facilities, elevators, reservoirs, pipes, generators, chimneys, fans and ventilation ducts, and units. Air pressure, mechanical ventilation systems, main water pipes, sewer pipes, gas pipelines and chimneys, towers, wires, power and telecommunication ducts serving owners of more than one unit, measuring devices to extend or supply utility services, and any other parts not located Within the limits of any unit, are necessary or required for the existence, maintenance, sustainability, safety and operation of the common property.

The law also defined the common parts of the land, including roads, roundabouts, intersection points, corridors, sidewalk edges, road separation islands, gantry bridges, drainage and related systems, as well as lakes, ponds, canals, parks, fountains, water forms, and waterways Other equipment, including associated equipment, landscaping, plazas, playgrounds, rest areas, car parks designated for the use of the management body and or the owners or visitors committee, unless the site plan includes otherwise, in addition to wires, cables, pipes and ducts T Grating, channels, machinery, equipment by which common units or parts are provided with various services, measuring equipment for extension or supply of utility services, and any other common parts included in the site plan.

The law regulates the ownership of the areas allocated to the developer. When the project plan or site plan is approved for the first time and after obtaining the approval of the Land Department and the competent authority, the areas owned by the developer may be specified in the project or site plan, which shall be prepared for private, commercial or investment use. Such approval and exploitation of the areas owned by the developer in a manner that does not contradict the Basic Law of the Complex and the rights of owners. The law also details the components of the real estate unit, and obliges the developer to allocate the parking lots allocated to the unit in the name of the owner. In all cases, the unit may not be sold or disposed of separately from the designated parking lots.

The law specifies the ownership of the shares in the common parts where the owner and developer for the unsold units own an undivided share of the common parts.The share is determined on the basis of the unit area of ​​the total area of ​​the common property.The owner may sell or dispose of his unit in any form of disposal. It is not permissible to divide any jointly owned unit between two or more persons among themselves into separate units unless the Basic Law of the Complex allows it, and after the approval of the Land Department. , The gravel And the necessary licenses from the competent authority.

The owner shall have the right to purchase any other owner's share in the same unit, if he wishes to sell or dispose of it to someone other than the partners.If he exercised this right more than one owner, they shall be entitled to purchase the share of the owner wishing to sell or dispose of it in proportion to the existing shares of each unit. The right of priority shall not arise if the owner's share is sold or disposed of between the assets and branches or between spouses or relatives up to the fourth degree or in-laws to the second degree.The law also regulates the use of the right of priority, the mechanisms of leasing the unit, and the disposal of common parts and common facilities.

According to the law, common real estate for the purpose of managing the common parts is divided into three categories.
First: The major projects, which are determined according to the criteria set by the Director General of the Land Department in this regard, and the developer is responsible for the management, operation, maintenance and repair of common parts and facilities services. A major committee shall be formed by a landlord committee whose members shall be selected by the RERA from among the owners living in the common property.

The second category includes: hotel projects, which are the projects where the developer should entrust the management of the common parts to the hotel projects management company in accordance with the controls approved by the Director General of the Land and Property Department in this regard. Management of hotel projects is willing to do so, without the owners committee having the right to interfere with the management of the hotel project or the parts involved in it.

The third category includes real estate projects other than major projects and hotel projects. The joint parts in these projects are managed by specialized management companies selected and contracted by the Real Estate Regulatory Authority in accordance with the rules and principles determined by a decision issued by the Director General of the Land and Property Department in this regard. Real estate which falls under this category is an owners committee whose members are determined by the RERA as prescribed under this law.

The law stipulates that if the two joint and third categories mentioned above meet in the joint property, the joint parts of this joint property shall be managed by the Hotel Projects Management Company. In this case, the joint property shall form a single landlord committee whose members shall be determined by the RERA as prescribed under this law. The developer may entrust all or some of the tasks and responsibilities prescribed to him to the management company in return for fees and conditions agreed upon by the parties, provided that this agreement is approved by the Real Estate Regulatory Authority, and in the absence of the developer in projects falling under the first and third categories. The management company is chosen by the institution.

The main developer manages and maintains the facilities involved in the main project, and entrusts it to the management company under a written agreement previously approved by RERA.

المطور The law requires the developer to put building management system in major projects and hotel projects that he manages, provided that the building management system is approved by the Real Estate Regulatory Authority before any legal action is taken on the units that make up the joint property in major projects and hotel projects.

العقاري The Real Estate Regulatory Authority shall establish the building management system in other joint properties other than projects that fall under the first and second categories, in the absence of a building management system for these common properties, and it may seek the assistance of any specialized company in this field. From the common property in phases, a building management system for that developed part must be developed.

The master developer shall also put the basic compound system in the main project before concluding any legal action on the lands, buildings or units in the main project, provided that the basic compound system shall be approved by the Real Estate Regulatory Authority. The rights of buyers only after obtaining the approval of the institution on it.

The law stipulates that the owners committee for real estate projects shall be formed for the first and third categories stipulated in this law, provided that the number of members of the owners committee does not exceed nine members, including the chairman and deputy chairman of the owners committee, and that the Real Estate Regulatory Authority shall select them. Not less than ten percent of the total number of units in the joint property in the name of the owners of these units in the land register at the Land Department. The developer may not be a member of the Landlords Committee unless he owns unsold units in the joint property. Its members as its chairman suc They shall have the same terms and conditions as stipulated in this Law and the resolutions issued pursuant thereto.

The Real Estate Regulatory Authority shall, not contrary to the provisions of this Law, establish the Basic Law. The owner's membership in the Landlord Committee shall be forfeited in the event that he loses any of the conditions of membership, provided that the Corporation shall appoint a substitute member for whom these conditions apply. The real estate committee may re-establish the landlords at any time, subject to the availability of membership conditions.

The Owners Committee shall, in accordance with the law, perform a number of tasks, including: • Verifying that the management body manages, operates, maintains and repairs the common parts in accordance with the provisions of this Law and the resolutions issued pursuant thereto, and the Building Management System; Request financial reports related to the common property, discuss the obstacles and difficulties related to the management, operation, maintenance and repair of the common parts, and make the necessary recommendations thereon to the administration or the Real Estate Regulatory Authority, as the case may be, and receive complaints and complaints. Proposals submitted by owners and unit holders regarding the management, operation, maintenance and repair of the common parts and notifying the administration thereof, provided that the owners committee shall submit such complaints and suggestions to the Real Estate Regulatory Authority if the administration does not process them within fourteen days from the date of its notification thereof. Replacing the management body for real estate projects that fall under the third category, and providing the necessary advice to the institution regarding the selection and appointment of the new management body.

The Owners Committee shall also notify the Administration or the Real Estate Regulatory Authority of any defects in the structural parts of the common property, or of any damages or defects in the common parts requiring emergency treatment, and to coordinate with the Corporation, the Management Authority or the competent authority in all matters related to safety, environment and security. And other aspects related to the common property, and to submit any proposals to the management on the mechanism to benefit from the common parts or amendment of the building management system, provided that the amendment of the building management system of the institution.

The law stipulates that the landlord shall pay to the governing body his share of the services allowance, which is the annual financial allowance collected from the landlord to cover the expenses of administration, operation, maintenance and repair of the common property.This share shall be determined by the percentage of the area formed by the unit of the total area of ​​the common property, according to the mechanism approved by the director. In this regard, the developer shall bear his share of the services allowance for the unsold units, as well as for the sold units where the developer is obliged to pay the services allowance for the buyer in the sale or attachment contract in accordance with the provisions agreed in the contract; The lesson shall be the area of ​​the unit registered in the Land Registry when calculating the owner's share of the services allowance.

The master developer may collect the usage allowance, which is the annual financial allowance collected from the owner or sub-developer for the management, operation, maintenance and repair of common facilities, within the master project, whether for prefabricated or under construction or land space. The use, in accordance with the mechanism to be determined by a decision of the Director General of the Land and Property Department in this regard, taking into account in the determination of this mechanism of the compound system adopted.

According to the law, the administration is prohibited from imposing or collecting any financial allowances of any kind from the owner for the management, operation, maintenance and repair of common parts or common facilities or for any other reason except after obtaining the prior approval of RERA. The Corporation may not approve or approve the budget allocated for the services or usage allowance unless approved by one of the legal auditing offices accredited to it for this purpose.

The Corporation may, in cases of necessity, adopt a provisional budget for services allowance until the final approval of the budget. The provisional budget shall be approved in accordance with the regulations to be determined by a decision issued by the Director General of the Land and Property Department.

The law stipulates that the owner or sub-developer may not refrain from paying the services and use allowance approved by RERA, and the owner may not give up his share in the common parts to avoid paying the allowances due to him.

It is prohibited for the developer or the management to take any action against the owner that prevents him from receiving or benefiting from the unit or the common parts or common facilities, with the intention of obliging him to pay the services or use allowance in contravention of the procedures stipulated in this law and the decisions issued pursuant thereto.

The law specifies the conditions for depositing and disposing of services and usage allowance, as well as control and inspection mechanisms. The Real Estate Regulatory Authority shall supervise and inspect the operation, management, maintenance and repair of common properties, common parts and common facilities. The management body shall conclude contracts and agreements with maintenance, guarding, cleaning, insurance and other institutions and companies. Institutions and companies to the extent necessary to perform their duties and obligations as set forth in this law.

الإدارة The management body shall provide the Corporation with a periodic report every six months on the management of the common real estate, the common parts, the common facilities and the maintenance works that have been carried out on it. Usage.

According to the law, if the Real Estate Regulatory Authority finds that the common parts or facilities are not maintained or maintained in a good, clean and serviceable condition, it may request the management authority, in writing, to take the necessary measures or carry out the repairs and maintenance it deems appropriate in this regard. The Corporation shall specify the repair and maintenance works required in the notification as well as the time of commencement and completion.

‌ In case the management fails to carry out repair and maintenance works, RERA may entrust any other party to carry out such works or any of them, and deduct the costs and expenses arising therefrom from the special account for service or usage allowance.

The law requires the administration to provide a bank guarantee to the Land and Property Department at the value it determines for all the joint properties it manages, to ensure the repair of damage to the common parts or common facilities as a result of negligence or default of the management body, and if it is inflicted on the common property or its joint parts or joint facilities. Damages arising from the act of the management or because of negligence or negligence in its work, the Real Estate Regulatory Authority may, by written notice, request the management to repair such damages within the period specified by it.

In case the management fails to repair the damages within the period specified in the notification addressed to it, the Corporation may entrust any other party to implement all or some of the requirements contained therein, and deduct the costs and expenses resulting from the bank guarantee provided by the management.

The law stipulates that if the developer or hotel project management company is found to be incompetent or capable of managing the joint property or the joint parts in the first and second categories stipulated in this law in a way that ensures its sustainability and suitability for service, the executive director of RERA may appoint a company. A specialized department which manages and operates that joint property or its common parts. Such procedures shall also be applied if the main developer is found to be inefficient or unable to manage the joint facilities in the main project in such a way as to ensure their sustainability and serviceability.

If the RERA considers the inefficiency, effectiveness or ability of the management company to manage and maintain the joint parts of the third category real estate projects stipulated in this law, the RERA may appoint an alternative management company to manage the joint property. Informing the owners committee on the violations committed by the management company and requesting its opinion in this regard. A written warning shall be sent to the management company, which shall include a statement of errors and negative practices that it follows in the management, operation, maintenance and repair of the common parts. Days from the date you inform it.

RERA has the right to appoint a legal auditing office to audit the services allowance account and verify the compliance of the management company with the budget of the services allowance approved by the organization, and give the management company a deadline to hand over the management of the joint property to the alternative management company within a period not exceeding thirty days from the date of Issuance of the decision of the Corporation to appoint an alternative management company, and if the work of the replaced management company results in damage to any property in the joint property or the common parts, the value of repairing such damage shall be charged, provided that such value shall be deducted from the bank guarantee of such property. Company.

According to the law, the occupant of the unit in the joint property may not make any substantial changes or changes to the structure or the external appearance of the unit or any part of the joint property, except after obtaining the approval of the main developer, the Dubai Land Department and the competent authority to issue building permits and approve area plans. In the Emirate, and without prejudice to the building legislation in force in Dubai.

The occupant of the real estate unit shall be responsible for repairing the damage arising from the change or modification at his own expense and in the manner prescribed by the master developer or RERA.If the occupant fails to repair the damage, the enterprise or principal developer shall entrust any party to repair such damage and shall bear the expenses and costs of the repairer. Subject to the provisions of the Building Management System, the occupant shall use the common parts in such manner and in such a manner as not to prejudice the rights of others to use the common parts or to disturb them or endanger their safety or the safety of the common property.

The law specifies the responsibility of the developer in repairing or correcting any defects in the structural parts of the common property. The tenure of liability shall be limited to ten years starting from the date of obtaining the completion certificate for the real estate project that he developed, all subject to the provisions of the contract of contract stipulated in the federal law. No. (5) of 1985 on Civil Transactions. The developer's responsibility to repair or replace defective installations in the common property shall continue for one year from the date of delivery of the unit to the owner. These installations shall include mechanical and electrical works, sanitary installations, sewerage and the like. In the case of the owner's failure to receive the unit for any reason, that period calculated from the date of obtaining a certificate of achievement for the real estate project developed by the developer, it is null and void any agreement after the present law, including any conflict with the provisions of its articles.

According to the law, the administration is obliged to insure the joint property to ensure its maintenance or rebuilding in case it is burned, destroyed or destroyed for any reason. Insurance premiums due to owners are calculated in accordance with the insurance contract entered into with the insurance company and within the cost of the service allowance.

The law granted the Center for Settlement of Rental Disputes in Dubai in addition to its powers under the applicable legislation, in particular Decree No. (26) of 2013, the power to consider and adjudicate all disputes and disputes related to the rights and obligations stipulated in this law and the decisions issued thereunder, in accordance with the rules and procedures in force. By the Center in this regard.

The law stipulates that any person who commits any of the acts constituting a violation of the provisions of this law and the decisions issued pursuant thereto shall be punished with a fine not exceeding one million dirhams, and the value of the fine shall be doubled if the same violation is repeated within one year from the date of the previous violation. The acts which constitute a violation of the provisions of this law and the financial fines prescribed for each shall be determined by a resolution issued in this regard by His Highness the Chairman of the Executive Council of the Emirate of Dubai.

According to the law, any interested party shall have the right to appeal in writing to the Director General of the Land and Property Department against any decision or action taken against him pursuant to this law and the decisions issued pursuant thereto, within thirty days from the date of notification of the decision or the grievance procedure thereof. The date of submission of such appeal shall be final, without prejudice to the right of the complainant to resort to the Center for Rent Dispute Resolution in Dubai to object to the decisions and actions taken against him.

The law requires all developers, management companies and associations of owners to adjust their status in accordance with the provisions of this law, within six months from the date of its entry into force, and the Director-General of the Land and Property Department may extend this period for a similar period where necessary, and the provisions of this law shall not prejudice the contracts between the developer and the owner It was concluded prior to its implementation, as well as the basic system of the complex approved by the Real Estate Regulatory Authority and its applicant, except for the formation of owners associations.

The Department shall replace the Owners Association in the rights and obligations that have arisen before the provisions of this law. The Director General of the Land and Property Department shall issue the necessary decisions to implement its provisions and shall be published in the Official Gazette of the Government of Dubai.

Law No. (27) of 2007 on ownership of joint properties in the Emirate of Dubai and any provision in any other legislation shall be repealed to the extent that it contradicts the provisions of Law No. (6) of 2019, and the regulations, rules and decisions issued in implementation of Law No. (27) shall continue. For the year 2007 referred to, to the extent that does not conflict with the provisions of this law, until the issuance of regulations, regulations and decisions that replace them.

The new law on the ownership of common property in the Emirate of Dubai shall be published in the Official Gazette and shall come into force sixty days after its publication.